Musrath Shaik
(175 Points)
Replied 19 July 2023
ITC (Input Tax Credit) is generally not available for the purchase of a motor vehicle used for the transportation of goods, irrespective of whether it is purchased in the Margin Free Market or any other market. The Input Tax Credit is a mechanism that allows a registered taxpayer to claim a credit for the GST paid on the purchases made for use in their business, which can be used to offset their GST liability on sales.
However, the GST law specifically restricts the availability of ITC on certain goods and services, and one of the items excluded from claiming ITC is motor vehicles when used for transportation of goods. This restriction applies even if the vehicle is purchased for business purposes.
It's important to note that tax laws are subject to change, and new regulations may have been introduced since my last update. Therefore, I strongly recommend consulting a qualified tax professional or checking the latest guidelines on the official GST portal or relevant government sources to confirm the current rules regarding Input Tax Credit for the purchase of vehicles used for transporting goods. They can provide you with the most up-to-date and accurate information based on your specific circumstances and the latest GST regulations.
For further more detailed information on this topic visit: ITC rules for Input Service Distributor
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